1. Business Report Human Resources

2. Outline Introduction Issues Differences between two countries The quality of labor market Alternative Solutions Recommendations Employee’s selection HR Assistant Officer Retain Employees Action Plan

4. HR Department needs :Workers who have deep understanding about Vietnamese culture Cohesive policy must also be developed

5. Labor policy The highest number of strikes laid on foreign invested enterprises The combination of rising inflation rate, unfair wage level and lack of social security in these These strikes reduce the profit of firms, but also weaken firms’ reputation in the market. Disadvantages for attracting foreign investment.

7. The three highest rated qualifications of Vietnam’s workforce belong to Red River Delta, South Central Coast and South East

9. The quality of labor market Turnover rate employees turnover at foreign invested firms has reached 15.8 percents, which is relatively high the lack of qualified workers and other opportunities elsewhere Employees might experience pay drop or other social affairs average salary in FIEs in Vietnam was reported to increase by nearly 13 percent due to higher inflation

10. ALTERNATIVE SOLUTIONS

11. RECOMMENDATION Employee’s selection Assigning experienced people from the mother company in Australia to superior positions. The cost for recruitment and training local workers will be lower HR Assistant Officer and company’s lawyer needed A Vietnamese lawyer needed to help company get along with Vietnamese regulation Co-operate with Vietnamese HR firms for working as HR Assistant officers.

12. RECOMMENDATION Retain Employee Provides various training and tutorial for new employees Relocating Australian employees for superior positions guarantees the quality of the management an employee receives Observing through training and working hours, identify and approach the potential employees

13. Action Plan

14. Conclusion

15. Reference Brown, S 2009, ‘Understanding Cultural Differences in Business: How Differences in Culture Affect Business Communication and Conduct’, suite101, viewed 22 December 2010, <http://www.suite101.com/content/understanding-cultural-differences-in-business-a117469>. Fitzgerald, W 1992, ‘Training versus Development’, Training and Development Journal, May 1992, pp. 81-84. Gross, A 2007, ‘Asian Cultural Diversity in Human Resource Management’, Pacific Bridge, viewed 24 December 2010, <http://www.pacificbridge.com>. Hofstede, G 1994, Cultures and organizations: Software of the mind, London, McGraw Hill. Investment Gateway to Vietnam 2010, Foreign invested enterprises fret over staff turnover, Invest In Vietnam, viewed 22 December 2010, <http://www.investinvietnam.vn/Default.aspx?ctl=Article&tID=2&pID=120&aID=2142>. Investment Gateway to Vietnam 2010, Vietnam’s Competitive Advantages: Human Resources, Invest In Vietnam, viewed 21 December 2010, < http://www.investinvietnam.vn/Default.aspx?ctl=Inv&tID=3&pID=128&aID=362>.